When shopping for a car, it’s easy to get swept up in attractive dealer promotions. However, some of these offers can signal underlying issues that might cost you in the long run. Here’s a rundown of seven dealer promotions that should raise red flags.

1. Too-Good-To-Be-True Financing Offers

Low or zero-percent financing can be enticing, but if the deal sounds too good to be true, it often is. Many dealers use these promotions to draw you in, only to bury fees or inflate the vehicle’s price elsewhere in the deal.

Always read the fine print and calculate the total cost. A lower interest rate might not be worth it if the car’s price is hiked significantly or if you’re forced into a longer loan term.

2. “No Money Down” Promotions

While the idea of driving off the lot without making a down payment sounds appealing, it can lead to negative equity. This often means you’ll owe more than the car is worth almost immediately.

Additionally, this can result in higher monthly payments and interest rates. It’s essential to consider if you can afford the total cost of the loan and avoid potential financial pitfalls.

3. Inflated Trade-In Values

Dealers sometimes inflate the trade-in value of your old vehicle to make a sale seem more attractive. While it’s nice to get a good deal on your trade-in, be wary of the overall transaction.

Research your car’s actual value beforehand to ensure you’re not losing out on other aspects of the deal. An inflated trade-in can mask a less favorable purchase price on the new vehicle.

4. Limited-Time Offers

Pressure tactics like limited-time offers can make you feel rushed into a decision. While some promotions may have genuine expiration dates, others are simply marketing tricks designed to create a sense of urgency.

Take your time to evaluate your options. A good deal will still be there tomorrow—or next week—if it’s legitimate. Don’t let the pressure of a ticking clock drive you into a poor financial decision.

5. Free Maintenance or Service Packages

Free maintenance might sound like a great incentive, but often, these packages come with strings attached. They may only cover basic services or require you to return to the dealer for all maintenance, which can be inconvenient and costly.

Additionally, the quality of the service may not be up to par with independent shops. Always verify what the package includes and weigh it against your typical maintenance costs.

6. Promotions Tied to Membership or Subscriptions

Some dealers offer promotions that require you to join a membership or subscription service. While these can seem beneficial, they often come with hidden fees or services you may not need or use.

Before signing up, evaluate the necessity and value of the membership. It’s essential to determine if these added costs outweigh the benefits of the promotion.

7. Referral Bonuses

While referral bonuses can seem like a friendly way to save money, they may compromise the integrity of the deal. If salespeople are incentivized to push specific vehicles, they might prioritize their bonus over your best interests.

Always ensure that the vehicle you’re being referred to truly meets your needs and budget. Don’t get swayed by potential bonuses; focus on finding the right car for you.

In conclusion, while dealer promotions can offer great savings, it’s crucial to remain vigilant. Understanding the potential pitfalls can save you from making a decision you might regret later. Always do your homework, and don’t hesitate to walk away from a deal that raises your suspicions.